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  1. 1. 1 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!====================================================================== STUDY NOTES for NISM SERIES V MUTUAL FUND DISTRIBUTORS Exam (Earlier - AMFI Exam) Prepared By (CLICK THE LINK ABOVE TO WRITE NISM MFD EXAM MODEL TEST) DEMO EXAM - FREE PLAN A : Rs 250 for 5 Online Model Tests PLAN B : Rs 400 for 10 Online Model Tests PLAN C : Rs 500 for 15 Online Model provides you with basic information, study material & online modelexams to succeed in major NCFM (NSEs Certification in Financial Markets), BCFM (BSEsCertification in Financial Markets) and NISM exams (National Institute of SecuritiesMarkets). Both Premium (Paid) & Demo Versions are available in the website.The contents have been prepared by our Company AKSHAYA INVESTMENTS, a Madurai basedFinancial Services & Training firm. We are into NISM / NCFM / BCFM / AMFI (Mutual Fund)Training, Stock advisory, Life & Health Insurance, Mutual Funds distribution and Tax Planning.Training Profile of AKSHAYA INVESTMENTSWe have been training individuals in NCFM, BCFM and NISM modules for the past 7 years. Overthe last 7 years, we have delivered over 10,000 Hours of mass outreach education to financialintermediaries, Bankers, Individual agents, Students etc in over 20 Cities.Our trainers are empanelled in the following organizationsNISM – CPE Trainers for NISM MFD and NISM Depository OperationsNational Stock Exchange – (For their Financial Literacy Program)Bombay Stock Exchange – (For their Investor Awareness Programs)Reliance Mutual Fund – (EDGE Learning Academy)NJ India Invest – (NJ Gurukul)ICICI Securities – (I-DIRECT) For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  2. 2. 2 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================We have conducted NCFM / BCFM / NISM / IAP sessions in more than 50 Colleges &Universities including Madurai Kamaraj University, Vellore Institute of Technology, PondicherryUniversity, PSG Institute of Management etc.We have trained the employees of more than 100 organizations including Reliance Mutual Fund,ICICI Bank, Aditya Birla Money, HDFC Bank, Deutsche Bank etc. We provide training on ALLmodules of NISM, NCFM & BCFM. We provide training on any subject related to Stock market.TRAINING FOR COLLEGE STUDENTSTraining can be given for MBA, M.Com, B.Com, BBA students to pass NISM / NCFM examswhich will help in their placement in Banks, Share broking Offices, Mutual Fund Companies etc.Kindly Contact Mr.Ram @ 0 98949 49987 or Mr.Srini @ 0 98949 49988 for training onNISM Certifications in Colleges.Our Profile NISM SERIES V MUTUAL FUND DISTRIBUTORS EXAMAssessment StructureThe examination consists of 100 questions of 1 mark each and should be completed in 2 hours.The passing score on the examination is 50%. There shall be negative marking of 25% of themarks assigned to a question. Certificate is valid for a period of 3 years. Certificate can be renewedby attending NISM CPE Session. Call Srini@ 98949 49988 for NISM CPE Training details.WHAT IS A MUTUALFUND?A Mutual Fund is a trust that pools the savings of a number of investors who share a commonfinancial goal. Anybody with an investible surplus of as little as a few hundred rupees can invest inMutual Funds. These investors buy units of a particular Mutual Fund scheme that has a definedinvestment objective and strategy.The money thus collected is then invested by the fund manager in different types of securities.These could range from shares to debentures to money market instruments, depending upon thescheme’s stated objectives. The income earned through these investments and the capitalappreciation realized by the scheme is shared by its unit in proportion to the number of unitsowned by them.Thus a Mutual Fund is the most suitable investment for the common man as it offers anopportunity to invest in a diversified, professionally managed basket of securities at a relativelylow-cost. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  3. 3. 3 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================TYPES OF MUTUALFUND SCHEMES(A) By StructureOpen-Ended Schemes do not have a fixed maturity. You deal with the Mutual Fund for yourinvestments & Redemptions. The key feature is liquidity. You can conveniently buy and sell yourunits at Net Asset Value (NAV) related prices, at any point of time. Investors can sell their units tothe scheme through a re-purchase transaction at re-purchase price, which is linked to NAV.Close-Ended Schemes have a stipulated maturity period are called close ended schemes. You caninvest in the scheme at the time of the initial issue and thereafter you can buy or sell the units ofthe scheme on the stock exchanges where they are listed.Interval Schemes combine the features of open-ended and close-ended schemes. However,between these intervals, the Units have to be compulsorily listed on stock exchanges to allowinvestors an exit route. They will be open for sale or redemption during predetermined intervals atNAV related prices.(B) By Investment ObjectiveGrowth Schemes - Aim to provide capital appreciation over the medium to long term. Theseschemes normally invest a majority of their funds in equities and are willing to bear short termdecline in value for possible future appreciation. These schemes are not for investors seekingregular income or needing their money back in the short term. Ideal for Investors in their primeearning years.Income Schemes - Aim to provide regular and steady income to investors. These schemesgenerally invest in fixed income securities such as bonds and corporate debentures. Capitalappreciation in such schemes may be limited. Ideal for: Retired people and others with a need forcapital stability and regular income. Ideal for Investors who need some income to supplement theirearnings.Balanced Schemes - Aim to provide both growth and income by periodically distributing a part ofthe income and capital gains they earn. They invest in both shares and fixed income securities inthe proportion indicated in their offer documents. In a rising stock market, the NAV of theseschemes may not normally keep pace or fall equally when the market falls. Ideal for Investorslooking for a combination of income and moderate growth.Money Market / Liquid Schemes - Aim to provide easy liquidity, preservation of capital andmoderate income. These schemes generally invest in safer, short term instruments such as treasurybills, certificates of deposit, commercial paper and interbank call money. Ideal for: Corporates andindividual investors as a means to park their surplus funds for short periods. liquid funds can investin securities having less than 61 days of maturity.Tax Saving Schemes (Equity Linked Saving Scheme - ELSS) - These schemes offer taxincentives to the investors under tax laws as prescribed from time to time and promote long terminvestments in equities through Mutual Funds. Ideal for: Investors seeking tax incentives. Theseschemes come with a lock in period of 3 years. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  4. 4. 4 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Other SchemesSectoral fund schemes are ideal for investors who have decided to invest in a particular sector.Thematic funds invest in line with an investment theme. The investment is more broad-based thana sector fund; but narrower than a diversified equity fund.Index Fund schemes are ideal for investors who are satisfied with a return approximately equal tothat of an index. These schemes attempt to replicate the performance of a particular index such asthe BSE Sensex, the NSE 50 (NIFTY). Invests in Index Stocks as per the Weightage. FundManager has no role in deciding on investments. These funds are not designed to outperform theIndex and have Low Running Cost. An Index Fund with Low Tracking Error is a Good Fund.Fixed Maturity Plans - Fixed Maturity Plans (FMPs) are investment schemes floated by mutualfunds and are close ended with a fixed tenure, the maturity period ranging from one month tothree/five years. Fixed maturity plans are a kind of debt fund where the investment portfolio isclosely aligned to the maturity of the scheme. The objective of such a scheme is to generate steadyreturns over a fixed-maturity period and protect the investor against Interest rate fluctuations.Gold Exchange Traded Funds (GETFs) - Gold Exchange Traded Funds offer investors aninnovative, cost-efficient and secure way to access the gold market. Gold ETFs are intended tooffer investors a means of participating in the gold bullion market by buying and selling units onthe Stock Exchanges, without taking physical delivery of gold. GOLD ETF invests in 99.99% pureGOLD. NAV of GOLD ETF depends on Real Prices of GOLD Bullion. Gold funds invest in goldand gold-related securities.Actively managed funds are funds where the fund manager has the flexibility to choose theinvestment portfolio, within the broad parameters of the investment objective of the scheme.Passive funds invest on the basis of a specified index, whose performance it seeks to track.Gilt funds invest in only treasury bills and government securities.Diversified debt funds on the other hand, invest in a mix of government and non-government debtsecurities. Junk bond schemes or high yield bond schemes invest in companies that are of poorcredit quality.Floating rate funds invest largely in floating rate debt securitiesDiversified equity funds invest in a diverse mix of securities that cut across sectors.Equity Income / Dividend Yield Schemes invest in shares that fluctuate less, and thereforedividends represent a significant part of the returns on those shares.Monthly Income Plan seeks to declare a dividend every month. They are Hybrid in nature.Capital Protected Schemes are close-ended schemes, which are structured to ensure that investorsget their principal back, irrespective of what happens to the market. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  5. 5. 5 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Real estate funds invest in real estate. Commodity funds invest in asset classes like food crops,spices, fibres, industrial metals, energy products or precious metals as may be permitted by theirinvestment charter. Direct investing in Commodities is not allowed in India.Fund of Funds (FOFs) - Fund of Funds are schemes that invest in other mutual fund schemes.Funds Investing Abroad – Off Shore Schemes - Mutual Funds have been permitted to invest inforeign securities/ American Depository Receipts (ADRs) / Global Depository Receipts (GDRs).Some of such schemes are dedicated funds for investment abroad while others invest partly inforeign securities and partly in domestic securities. While most such schemes invest in securitiesacross the world there are also schemes which are country specific in their investment approach.Example: Franklin Asian Equity Fund, HSBC Brazil Fund.Net Asset Value (NAV) – Current market price of the unit.Sale Price - Is the price you pay when you invest in a scheme. Also called as Offer Price.Sale Price – NAV = Entry LoadRepurchase Price - Price at which units are repurchased / Redeemed by the Mutual Fund.NAV – Repurchase Price = Exit LoadWHY SHOULD YOU INVEST IN MUTUAL FUNDS?1. Professional Management - You avail of the services of experienced and skilled professionalswho are backed by a dedicated investment research team which analyses the performance andprospects of companies and selects suitable investments to achieve the objectives of the scheme.2. Diversification - Mutual Funds invest in a number of companies across a broad cross-section ofindustries and sectors. This diversification reduces the risk because seldom do all stocks decline atthe same time and in the same proportion.3. Convenient Administration - Investing in a Mutual Fund reduces paperwork and helps youavoid many problems such as bad deliveries, delayed payments and unnecessary follow up withbrokers and companies. Mutual Funds save your time and make investing easy and convenient.4. Return Potential - Over a medium to long term, Mutual Funds have the potential to provide ahigher return as they invest in a diversified basket of selected securities.5. Low Costs - Mutual Funds are a relatively less expensive way to invest compared to directlyinvesting in the capital markets because the benefits of reduction in share brokerage whichtranslate into lower costs for investors.6. Liquidity - In open-ended schemes, you can get your money back promptly at Net Asset Value(NAV) related prices from the Mutual Fund itself. With close-ended schemes, you can sell yourunits on a stock exchange at the prevailing market price.7. Transparency - You get regular information on the value of your investment in addition todisclosure on the specific investments made by your scheme, the proportion invested in each classof assets and the fund manager’s investment strategy and outlook. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  6. 6. 6 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================8. Flexibility - Through features such as Systematic Investment Plans (SIP), SystematicWithdrawal Plans (SWP) and dividend reinvestment plans, you can systematically invest orwithdraw funds according to your needs and convenience.9. Well Regulated - All Mutual Funds are registered with SEBI and they function within theprovisions of strict regulations designed to protect the interests of investors. The operations ofMutual Funds are regularly monitored by SEBI.YOUR RIGHTS AS A MUTUAL FUND UNITHOLDER1. Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme.2. Receive dividend within 30 days of their declaration and receive the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase. Failing which AMC has to pay a penalty of 15% per annum basis.3. Receive communication from the Trustees about change in the fundamental attributes of any scheme or any other changes which would modify the scheme and affect the interest of the unit holders & to have option to exit at prevailing Net Asset Value without any exit load.4. To publish their NAV, in accordance with the regulations: daily by 9 Pm in AMFI Site, in case of open-ended schemes and every Wednesday in case of close ended schemes. In case of Fund of Funds, NAV published at AMFI site by next day morning 10 AM. NAV has to be published daily, in at least 2 newspapers5. To disclose your schemes’ entire portfolio twice a year, un audited financial results half yearly and audited annual accounts once a year.6. To see to it that investment decisions are taken in the best interest of the unit holders.7. Investors can choose to change their distributor or go direct. In such cases, AMCs will need to comply, without insisting on any kind of No Objection Certificate from the existing distributor.8. Unit-holders have the right to inspect key documents such as the Trust Deed, Investment Management Agreement, Custodial Services Agreement, R&T agent agreement and Memorandum & Articles of Association of the AMC.9. Scheme-wise Annual Report or an abridged summary has to be mailed to all unit-holders within 6 months of the close of the financial year.10. PAN based Consolidated Account Statement (CAS) for each calendar month will be sent by post/email on or before 10th of the succeeding month.11. SOA to dormant investors (no transaction during the previous 6 months) can be sent along with the Portfolio Statement / Annual Return. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  7. 7. 7 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================12. In the case of SIP / STP / SWP SoA dispatched within 10 working days of Initial transaction and thereafter Once in a Quarter.13. On specific request SOA to be send with in 5 working days. For Post-NFO purchases SOA to be send within 10 working days. Statement of accounts (SOA) is to be sent to investors within 5 days of closure of the NFO.Mutual funds are a vehicle to mobilize moneys from investors, to invest in different markets andsecurities. The primary role of mutual funds is to assist investors in earning an income or buildingtheir wealth, by participating in the opportunities available in the securities markets.In order to accommodate investor preferences, mutual funds mobilize different pools of money.Each such pool of money is called a mutual fund scheme. Mutual funds offers investors within ascheme various options, such as dividend payout option, dividend reinvestment option and growthoption.An investor buying into a scheme gets to select the preferred option also. The investment that aninvestor makes in a scheme is translated into a certain number of ‘Units’ in the scheme. Thenumber of units multiplied by its face value (Rs10) is the capital of the scheme – its Unit Capital.When the profitability metric is positive, the true worth of a unit, also called Net Asset Value(NAV) goes up.When a scheme is first made available for investment, it is called a ‘New Fund Offer’ (NFO). Themoney mobilized from investors is invested by the scheme as per the investment objectivecommitted. Profits or losses, as the case might be, belong to the investors. The investor does nothowever bear a loss higher than the amount invested by him.The relative size of mutual fund companies is assessed by their assets under management (AUM).The AUM captures the impact of the profitability metric and the flow of unit-holder money to orfrom the scheme.Investor benefits from mutual funds include professional management, portfolio diversification,economies of scale, liquidity, tax deferral, tax benefits, convenient options, investment comfort,regulatory comfort and systematic approach to investing.Limitations of mutual funds are lack of portfolio customization and an overload of schemes andscheme variants.SCHEME RANKINGS BASED ON RISK SECTOR FUNDS ◊ Highest Risk FLEXIBLE ASSET ALLOCATION FUNDS GROWTH FUNDS JUNK BOND OR HIGH YIELD SCHEMES DIVERSIFIED EQUITY FUNDS For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  8. 8. 8 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!====================================================================== INDEX FUNDS VALUE FUNDS EQUITY INCOME OR DIVIDEND YIELD FUNDS FIXED ASSET ALLOCATION FUNDS MIP CAPITAL PROTECTION ORIENTED FUNDS CAPITAL PROTECTED FUND DIVERSIFIED DEBT FUNDS GILT FUNDS LIQUID FUNDS OR MONEY MARKET FUNDS ◊ Lowest RiskMutual funds in India are governed by SEBI (Mutual Fund) Regulations, 1996.The regulations permit mutual funds to invest in securities including money market instruments, orgold or gold related instruments or real estate assets.Mutual funds are constituted as Trusts. The mutual fund trust is created by one or more Sponsors,who are the main persons behind the mutual fund operation.Every trust has beneficiaries. The beneficiaries, in the case of a mutual fund trust, are the investorswho invest in various schemes of the mutual fund.In order to perform the trusteeship role, eitherindividual may be appointed as trustees or a Trustee company may be appointed. When individualsare appointed trustees, they are jointly referred to as Board of Trustees. A trustee companyfunctions through its Board of Directors.Day to day management of the schemes is handled by an AMC. The AMC is appointed by thesponsor or the Trustees. Although the AMC manages the schemes, custody of the assets ofthe scheme (securities, gold, gold-related instruments & real estate assets) is with a Custodian,who is appointed by the Trustees.Investors invest in various schemes of the mutual fund. The record of investors and their unit-holding may be maintained by the AMC itself, or it can appoint a Registrar & Transfer Agent(RTA).The sponsor needs to have a minimum 40% share holding in the capital of the AMC.The sponsor has to appoint at least 4 trustees – at least two-thirds of them need to be independent.Prior approval of SEBI needs to be taken, before a person is appointed as Trustee.AMC should have networth of at least Rs10crore. At least 50% of the directors should beindependent directors. Prior approval of the trustees is required, before a person is appointed asdirector on the board of the AMC.SEBI regulates mutual funds, depositories, custodians and registrars & transfer agents in thecountry. AMFI is an industry body, but not a self regulatory organization.The AMFI Code of Ethics sets out the standards of good practices to be followed by the AssetManagement Companies in their operations and in their dealings with investors, intermediaries &the public. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  9. 9. 9 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================AMFI has framed AGNI, a set of guidelines and code of conduct for intermediaries, consisting ofindividual agents, brokers, distribution houses and banks engaged in selling of mutual fundproducts.Investment objective defines the broad investment charter. Investment policy describes in greaterdetail, the kind of portfolio that will be maintained. Investment strategies are decided on aDay-to-day basis by the senior management of the AMC. At least 65% of the corpus should, in thenormal course, be invested in the kind of securities / sectors implied by the scheme’s name.Investor can ask for a Unit Certificate for his Unit Holding. It is different from a SOA. SOAcontains opening balance, transactions during the period & closing balance. A Unit Certificatementions the number of Units held by the investor. SOA is like a Bank pass book. Unit Certificateis like a Balance Confirmation Certificate. Unit Certificates are non-transferable & notransactional convenience. Unit Certificate if requested then AMC will issue within 30 days.The investor/s can appoint upto 3 nominees, who will be entitled to the Units in the event of thedemise of the investor/s. The investor can also pledge the units. This is normally done to offersecurity to a financier.Unit-holders have proportionate right to the beneficial ownership of the assets of the scheme.Investors can choose to hold the Units in dematerialised form. The mutual fund / AMC is bound toco-ordinate with the RTA and Depository to facilitate this.In the case of unit-holding in demat form, the demat statement given by the Depository Participantwould be treated as compliance with the requirement of Statement of Account.The mutual fund has to publish a complete statement of the scheme portfolio and the unauditedfinancial results, within 1 month from the close of each half year. In lieu of the advertisement, themutual fund may choose to send the portfolio statement to all Unit-holders.Debt-oriented, close-ended / interval, schemes /plans need to disclose their portfolio in theirwebsite every month, by the 3rd working day of the succeeding month.The Annual Report of the AMC has to be displayed on the website of the mutual fund. TheScheme-wise Annual Report will mention that Unit-holders can ask for a copy of the AMC’sAnnual Report.The trustees / AMC cannot make any change in the fundamental attributes of a scheme, unless therequisite processes have been complied. This includes option to dissenting unit-holders to exit atthe prevailing Net Asset Value, without any exit load. This exit window has to be open for at least30 days.The appointment of the AMC for a mutual fund can be terminated by a majority of the trustees orby 75% of the Unit-holders (in practice, Unit-holding) of the Scheme.75% of the Unit-holders (inpractice, Unit-holding) can pass a resolution to wind-up a scheme. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  10. 10. 10 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Custodian has custody of the assets & is appointed by the board of trustees. Sponsor & Custodiancan’t be the same. Custodian must be Independent. Custodian tracks corporate benefits.RTA (Registrar and Transfer Agent) is appointed by AMC and maintains investor’s records.Investor Service Centres (ISC), are offices of R&T. It is not compulsory to appoint a RTA.Scheme Auditor & AMC Auditor are different. Scheme Auditor is appointed by Trustee, AMCauditor by AMC.Role of calculating the NAV & DISCLOSING IT is done by Fund Accountant. It is notcompulsory to Outsource Fund Accounting Activity.If an investor feels that the trustees have not fulfilled their obligations, then he can file a suitagainst the trustees for breach of trust. Under the law, a trust is a notional entity. Therefore,investors cannot sue the trust (but they can file suits against trustees, as seen above).The principle of caveat emptor (let the buyer beware) applies to mutual fund investments.The investor can claim his moneys from the scheme within 3 years. Payment will be based onprevailing NAV. If the investor claims the money after 3 years, then payment is based on the NAVat the end of 3 years.If a security that was written off earlier is now recovered, within 2 years of closure of the scheme,and if the amounts are substantial, then the amount is to be paid to the old investors. In other cases,the amount is to be transferred to the Investor Education Fund maintained by each mutual fund.Investors need to give their bank account details along with the redemption request. Adequatesafeguards exist to protect the investors from the possibility of a scheme going bust.Under the SEBI guidelines, NFOs other than ELSS can remain open for a maximum of 15 days.Allotment of units or refund of moneys, as the case may be, should be done within 5 business daysof closure of the scheme. Further, open-ended schemes have to re-open for sale / re-purchasewithin 5 business days of the allotment.Investors get to know the details of any NFO through the Offer Document, which is one of themost important sources of information about the scheme for investors.Mutual Fund Offer Documents have two parts: (a) Scheme Information Document (SID), whichhas details of the scheme (b) Statement of Additional Information (SAI), which has statutoryinformation about the mutual fund that is offering the scheme.In practice, SID and SAI are two separate documents, though the legal technicality is that SAI ispart of the SID. Both documents need to be updated regularly.Offer Documents in the market are “vetted” by SEBI, though SEBI does not formally “approve”them. KIM is essentially a summary of the SID and SAI. It is more easily and widely distributed inthe market. As per SEBI regulations, every application form is to be accompanied by the KIM.Scheme Information Document (SID) – has details of the scheme. Draft SID is available forviewing in SEBI website for 21 working days. Final SID is hosted on AMFI site 2 days before the For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  11. 11. 11 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================issue opens. Statement of Additional Information (SAI) contains statutory information. Single SAIis enough for all the schemes of a Mutual Fund. SAI is part of SID. SID should be read inconjunction with the SAI and not in Isolation.MF can borrow only to meet Redemption / Liquidity needs. Borrowing is limited to 20% of NetAssets for a Max Period of 6 months. However MF cannot invest Borrowed amount.SEBI _does not prescribe any limit on commission payable. Upfront commission shall be Paid byInvestors directly based on the service rendered by the distributor. AMC pays Trail commission toMF Distributors on a Quarterly on Average Net Assets canvassed by the distributor. Since trailcommission is calculated as a percentage on AUM, distributors get the benefit of valuation gains inthe market.The changing competitive context has led to the emergence of institutional channels ofdistribution, to supplement the individuals who distribute mutual funds. Institutional channelsbuild their reach through employees, agents and sub-brokers.AMCs keep exploring newer channels of distribution to increase the size of assets managed. Theinternet has increased the expectations of advice that investors have from their distributors. Thestock exchange brokers have become a new channel for distribution of mutual funds. Thesebrokers too need to pass the prescribed test, get the AMFI Registration No. and get themselvesempanelled with AMCs whose schemes they want to distribute.The scheme application forms carry a suitable disclosure to the effect that the upfront commissionto distributors will be paid by the investor directly to the distributor, based on his assessment ofvarious factors including the service rendered by the distributor.The unit-holders’ funds in the scheme is commonly referred to as “net assets”.Net asset includes the amounts originally invested, the profits booked in the scheme, as well asappreciation in the investment portfolio. It goes up when the market goes up, even if theinvestments have not been sold.A scheme cannot show better profits by delaying payments. While calculating profits, all theexpenses that relate to a period need to be considered, irrespective of whether or not the expensehas been paid. In accounting jargon, this is called accrual principle.Similarly, any income that relates to the period will boost profits, irrespective of whether or not ithas been actually received in the bank account. This again is in line with the accrual principle. Inthe market, when people talk of NAV, they refer to the value of each unit of the scheme. Higherthe interest, dividend and capital gains earned by the scheme, higher would be the NAV. Higherthe appreciation in the investment portfolio, higher would be the NAV.Lower the expenses, higher would be the NAV. The difference between the NAV and Re-purchasePrice is called the “exit load”. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  12. 12. 12 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Schemes can also calibrate the load when investors offer their units for re-purchase. Investorswould be incentivized to hold their units longer, by reducing the load as the unit holding periodincreased. Such structures of load are called “Contingent Deferred Sales Charge (CDSC)”SEBI has banned entry loads. So, the Sale Price needs to be the same as NAV. Exit loads / CDSCin excess of 1% of the redemption proceeds have to be credited back to the scheme immediatelyi.e. they are not available for the AMC to bear selling expenses. Exit load structure needs to be thesame for all unit holders representing a portfolio.Initial issue expenses need to be met by the AMC. There are limits to the recurring expenses thatcan be charged to the scheme. These are linked to the nature of the scheme and its net assets.SEBI has allowed a transaction charge per subscription of Rs. 10,000/ – and above to be paid todistributors of the Mutual Fund products.Type of Investor Charges for Purchase of Rs 10,000 and aboveFirst Time Investor Rs 150Regular Investor Rs 100Dividends can be paid out of distributable reserves. SEBI has prescribed a conservative approachto its calculation.NAV is to be calculated upto 4 decimal places in the case of index funds, liquid funds and otherdebt funds. NAV for equity and balanced funds is to be calculated upto at least 2 decimal places.Investors can hold their units even in a fraction of 1 unit.However, current stock exchange trading systems may restrict transacting on the exchange towhole units.Mutual funds are exempt from tax. However, Securities Transaction Tax (STT) is applicable oninvestments in equity and equity mutual fund schemes. Additional tax on income distributed(Dividend distribution tax) is applicable on dividends paid by debt mutual fund schemes.Taxability of capital gains, and treatment of capital losses is different between equity and debtschemes, and also between short term and long term. Upto 1 year investment holding is short term.There is no Tax Deducted at Source (TDS) on dividend payments or re-purchase payments toresident investors. Withholding tax is applicable for some non-resident investors.Setting of capital losses against capital gains and other income is subject to limitations to preventtax avoidance. Investment in mutual fund units including Gold ETF is exempt from Wealth Tax. Product Transaction STT rate Equity-Delivery & for Purchase 0.125% Exchange Traded Equity Sell 0.125% Funds For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  13. 13. 13 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Sale of Futures and Options Sell 0.017% Equity MF – Repurchase Sell 0.25%Dividend Distribution Tax Individuals / HUF CorporateEquity Schemes NIL NILDebt Schemes 12.5% 30%Liquid Schemes 25% 30%Capital Gains Tax Equity Schemes Non-Equity Schemes Lesser of 10% without indexation orLTCG Tax NIL 20% with indexation Added to total income and taxed as perSTCG Tax 15% the slab Loss Set Off Against Short Term Long Term / Short Term Gain Long Term (Debt) Long Term Gain (Debt) Long Term Equity Cannot be Set OffBenchmark for Equity Schemes - SENSEX,S&P CNX Nifty, BSE 100Benchmark for Debt Schemes - NSE’s MIBOR, CRISIL LiquiFEX for Liquid SchemesGilt Schemes Si-Bex (1 to 3 years), Mi-Bex (3 to 7 years) & Li-Bex (more than 7 years)SEBI and RBI circulars dated August 9, 2011 have allowed Qualified Foreign Investors (QFIs)who meet KYC requirements can invest in equity and debt schemes of Mutual Funds through tworoutes: 1) Direct route – Holding MF units in Demat account through a SEBI registered depositoryparticipant (DP). 2) Indirect route – Holding MF units via Unit Confirmation Receipt (UCR)Individual and non-individual investors are permitted to invest in mutual funds in India. ForeignCompanies and OCBs are not permitted to invest. Since FIIs are permitted to invest, foreignentities can take this route. The ‘Who can invest’ section of the Offer Document is the best sourceto check on eligibility to invest.Uniform Know Your Client (KYC) requirements for the Securities Markets - same KYC form andsupporting documents shall also be used by SEBI registered intermediaries like Depository For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  14. 14. 14 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Participants, Mutual Funds, Portfolio Managers, Collective Investment Schemes and VentureCapital Funds.Micro SIPs i.e. SIPs with annual investment below Rs 50,000 is exempted from the PAN Cardrequirement. However relaxation in PAN requirement is not available for PIO, HUF, and NonIndividuals. It is available for Minor, Individuals and NRI. Besides KYC, non-individual investorsneed to provide additional documentation to support their investment.Demat makes it possible to trade in Units in the stock exchange. Full application form is to befilled for a first time investment in a mutual fund. Thereafter, additional investments in the samemutual fund are simpler. Only transaction slip would need to be filled.Investors can pay for their Unit purchases through cheque / DD, Net-based remittances, ECS /Standing Instructions or ASBA. MBanking is likely to increase in importance in the days to come.Non-resident investment on repatriation basis has to be paid through cheque on NRE account, or abanker’s certificate that investment is made out of moneys remitted from abroad. Transaction Slipcan be used for re-purchase.Investors can indicate the amount to re-purchase or the number of units to repurchase. Cut-offtimings have been specified for different types of schemes and different contexts to determine theapplicable NAV for sale and re-purchase transactions. These are not applicable for NFOs andInternational Schemes. Time Stamping is a mechanism to ensure that the cut-off timing is strictlyfollowed.NSE’s platform is called NEAT MFSS. BSE’s platform is BSE StAR Mutual Funds Platform.NON LIQUID FUND – CUT OFF TIMINGPurchase Time NAVLess than 2 Lakhs Till 3 PM Same day NAVEqual or Greater than 2 Lakhs Anytime NAV of Fund Realisation dayOutstation Cheque / DD Anytime NAV of Fund Realisation day Any AmountRedemptionAny Amount Till 3PM Same Day NAVCUT OFF TIMINGS ARE NOT APPLICABLE FOR NFO AND INTERNATIONAL FUNDS. Incase of Liquid Funds the timing is 2 PM for Purchase and 3 PM for Redemptions. If Funds areavailable for utilization on the same day then Previous day NAV would be allotted in case ofLiquid Funds. If Funds are not available then the NAV Previous to the day of Fund Realization isapplicable. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  15. 15. 15 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Dividend payout, Dividend investment and Growth are 3 possible options within a scheme. Eachoption has different implications on the investor’s bank account, investor’s taxation and schemeNAV.A constant amount is regularly invested in SIP, withdrawn in SWP and transferred betweenschemes in STP. These minimize the risk of timing the decisions wrongly.Triggers are another way of bring discipline into investing. Nomination and Pledge options areavailable for mutual fund investors.The portfolio is the main driver of returns in a mutual fund scheme. The underlying factors aredifferent for each asset class. Fundamental Analysis and Technical Analysis are two disciplines ofsecurities analysis. Fundamental Analysis entails review of the company’s fundamentals statements, quality of management, competitive position in its product / service marketetc. Technical analysts study price-volume charts of the company’s share prices. It is generallyagreed that longer term investment decisions are best taken through a fundamental analysisapproach, while technical analysis comes in handy for shorter term speculative decisions,including intra-day trading. Even where a fundamental analysis-based decision has been taken on astock, technical analysis might help decide when to implement the decision i.e. the timing.Growth investment style entails investing in high growth stocks. Value investment style is anapproach of picking up stocks which are valued lower, based on fundamental analysis. In a top-down approach, sector allocation is the key decision. Stock selection is important in bottom-upapproach.The returns in a debt portfolio are largely driven by interest rates and yield spreads. If the portfoliomanager expects interest rates to rise, then the portfolio is switched towards a higher proportion offloating rate instruments; or fixed rate instruments of shorter tenor. On the other hand, if theexpectation is that interest rates would fall, then the manager increases the exposure to longer termfixed rate debt securities.This additional return offered by a non-government issuer, above the yield that the governmentoffers, is called yield spread. Better the credit quality, lower the yield spread.Gold is a truly international asset, whose quality can be objectively measured. The value of gold inIndia depends on the international price of gold (which is quoted in foreign currency), theexchange rate for converting the currency into Indian rupees, and any duties on the import of gold.Unlike gold, which is a global asset, real estate is a local asset. It cannot be transported – and itsvalue is driven by local factors.Returns can be measured in various ways – Simple Returns, Annualised Returns, CompoundedReturns, Compounded Annual Growth Rate. CAGR assumes that all dividend payouts arereinvested in the scheme at the ex-dividend NAV. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  16. 16. 16 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================SEBI guidelines govern disclosures of return by mutual fund schemes. Loads and taxes pull theinvestor’s returns below that earned by the Scheme. Investor returns are also influenced by variousactions of the investor himself.Risks in mutual fund schemes would depend on the nature of portfolio, its liquidity, outsideliabilities and composition of unitholders. Fluctuation in returns is a measure of risk. Variance andStandard Deviation are risk measures for all kinds of schemes; beta is relevant for equity; modifiedduration and weighted average maturity are applicable for debt schemes.Benchmarking is a form of relative returns comparison. It helps in assessing under-performance orout-performance. Choice of benchmark depends on scheme type, choice of investment universe,choice of portfolio concentration and the underlying exposure.Sharpe Ratio, Treynor Ratio and Alpha are bases to evaluate a fund manager’s performance basedon risk-adjusted returns. Quantitative measures are based on historical performance, which may ormay not be replicated in future. Scheme evaluation is an art, not a science.Asset allocation is the approach of spreading one’s investments between multiple asset classes todiversify the underlying risk. The sequence of decision making in selecting a scheme is: Step 1 –Deciding on the scheme category (based on asset allocation); Step 2 – Selecting a scheme withinthe category; Step 3 – Selecting the right option within the scheme.While investing in equity funds, a principle to internalize is that markets are more predictable inthe long term, than in the short term. So, it is better to consider equity funds, when the investmenthorizon is adequately long.In an actively managed diversified fund, the fund manager performs the role of ensuring higherexposure to the better performing sectors or stocks. An investor, investing or taking money out of asector fund has effectively taken up the role of making the sector choices.It can be risky to invest in mid-cap / small cap funds during periods of economic turmoil. As theeconomy recovers, and investors start investing in the market, the valuations in front-line stocksturn expensive. At this stage, the mid-cap / small cap funds offer attractive investmentopportunities. Over longer periods, some of the mid/small cap companies have the potential tobecome large cap companies thus rewarding investors.Arbitrage funds are not meant for equity risk exposure, but to lock into a better risk-returnrelationship than liquid funds – and ride on the tax benefits that equity schemes offer. Althoughthese schemes invest in equity markets, the expected returns are in line with liquid funds.The comparable for a liquid scheme in the case of retail investors is a savings bank account.Switching some of the savings bank deposits into liquid schemes can improve the returns for him.Businesses, which in any case do not earn a return on their current account, can transfer some ofthe surpluses to liquid schemes.Balanced schemes offer the benefit of diversity of asset classes within the scheme. A singleinvestment gives exposure to both debt and equity. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  17. 17. 17 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Investors need to understand the structure of the gold schemes more closely, before investing.Equity investors would like to convince themselves that the sectors and companies where thescheme has taken higher exposure are sectors / companies that are indeed promising.Debt investors would ensure that the weighted average maturity of the portfolio is in line with theirview on interest rates.Investors in non-gilt debt schemes will keep an eye on credit quality of the portfolio – and watchout for sector concentration in the portfolio, even if the securities have a high credit rating.Any cost is a drag on investor’s returns. Investors need to be particularly careful about the coststructure of debt schemes. SEBI legislations prescribe a maximum exit load of 7%.Leveraging is taking large positions with a small outlay of funds.Securities issued by the Government are called Government Securities or G-Sec or Gilt. TreasuryBills are short term debt instruments issued by the RBI.Certificates of Deposit are issued by Banks (for 91 days to 1 year) or Financial Institutions (for 1to 3 years).Commercial Papers are short term securities (upto 1 year) issued by companies.Bonds / Debentures are generally issued for tenors beyond a year. Governments and public sectorcompanies tend to issue bonds, while private sector companies issue debentures.The difference between the yield on Gilt and the yield on a non-Government Debt security iscalled its yield spread.Significant Unit holder means any entity holding 5% or more of the total corpus of any scheme.Maximum investment per investor is limited to 25% of the Net Assets of the scheme.A scheme should have a minimum of 20 investors at any point of time.Amongst index schemes, tracking error is a basis to select the better scheme. Lower the trackingerror, the better it is. Similarly, Gold ETFs need to be selected based on how well they track goldprices.Mutual fund research agencies assign a rank to the performance of each scheme within a schemecategory (ranking). Some of these analyses cluster the schemes within a category into groups,based on well-defined performance traits (rating).Seeking to be invested in the best fund in every category in every quarter is neither an idealobjective, nor a feasible target proposition. Indeed, the costs associated with switching betweenschemes are likely to severely impact the investors’ returns. The underlying returns in a scheme,arising out of its portfolio and cost economics, is what is available for investors in its variousoptions viz. Dividend payout, dividend re-investment and growth options. For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  18. 18. 18 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Dividend payout option has the benefit of money flow to the investor; growth option has thebenefit of letting the money grow in the fund on gross basis (i.e. without annual taxation).Dividend reinvestment option neither gives the cash flows nor allows the money to grow in thefund on gross basis. Taxation and liquidity needs are a factor in deciding between the options. Theadvisor needs to understand the investor’s situation before advising.Many AMCs, distribution houses and mutual fund research houses offer free tools in their websiteto help understand performance of schemes.Physical assets like land, building and gold have value and can be touched, felt and used. Financialassets have value, but cannot be touched, felt or used as part of their core value. Shares,debentures, fixed deposits, bank accounts and mutual fund schemes are all examples of financialassets that investors normally invest in.The difference in comfort is perhaps a reason why nearly half the wealth of Indians is locked inphysical assets. There are four financial asset alternatives to holding gold in physical form – ETFGold, Gold Sector Fund, Gold Futures & Gold Deposits.Wealth Tax is applicable on gold holding (beyond the jewellery meant for personal use). Mutualfund schemes (gold linked or otherwise) and gold deposit schemes are exempted from Wealth Tax.Real estate in physical form has several disadvantages. Therefore, investors worldwide preferfinancial assets as a form of real estate investment.Bank deposits and mutual fund debt schemes have their respective merits and demerits. Interestearned in a bank deposit is taxable each year. However, if a unit holder allows the investment togrow in a mutual fund scheme, then no income tax is payable on year to year accretions. In theabsence of the drag of annual taxation, the money can grow much faster in a mutual fund scheme.Financial planning is a planned and systematic approach to provide for the financial goals that willhelp people realise their aspirations, and feel happy. The costs related to financial goals, in today’sterms, need to be translated into the rupee requirement in future. This is done usingthe formula A = P X (1 + i)nThe objective of financial planning is to ensure that the right amount of money is available at theright time to meet the various financial goals of the investor. An objective of financial planning isalso to let the investor know in advance, if some financial goal is not likely to be fulfilled. Theprocess of financial planning helps in understanding the investor better, and cementing therelationship with the investor’s family. This becomes the basis for a long term relationshipbetween the investor and the financial planner.A “goal-oriented financial plan” is a financial plan for a specific goal. An alternate approach is a“comprehensive financial plan” where all the financial goals of a person are taken together, and theinvestment strategies worked out on that basis.The Certified Financial Planner – Board of Standards (USA) proposes the following sequence ofsteps for a comprehensive financial plan: For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  19. 19. 19 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================• Establish and Define the Client-Planner Relationship• Gather Client Data, Define Client Goals• Analyse and Evaluate Client’s Financial Status• Develop and Present Financial Planning• Implement the Financial Planning Recommendations• Monitor the Financial Planning RecommendationsLife Cycle and Wealth cycle approaches help understand the investor better.There are differences between investors with respect to the levels of risk they are comfortable with(risk appetite). Risk profiling is an approach to understand the risk appetite of investors - anessential pre-requisite to advice investors on their investments. Risk profilers have theirlimitations. Risk profile is influenced by personal information, family information and financialinformation.Spreading one’s exposure across different asset classes (equity, debt, gold, real estate etc.)balances the risk. Some international researches suggest that asset allocation and investment policycan better explain portfolio performance, as compared to being exposed to the right asset classes(asset allocation) is a more critical driver of portfolio profitability than selection of securitieswithin an asset class (stock selection) and investment timing.Strategic Asset Allocation is the ideal that comes out of the risk profile of the individual. TacticalAsset Allocation is the decision that comes out of calls on the likely behaviour of the market.Financial planners often work with model portfolios – the asset allocation mix that is mostappropriate for different risk appetite levels. The financial planner would have a model portfoliofor every distinct client profile.Model PortfolioYoung call centre / BPO employee with no dependents 1. 50% in Diversified Equity Funds through SIP 2. 20% in Sector Fund, 10% each in Gold ETF, Diversified Debt, Liquid.Young married single income family with two school going kids 1. 35% diversified equity schemes; 15% in gold ETF, 2. 30% diversified debt fund, 10% each in Sector and liquid schemesSingle income family with grown up children who are yet to settle 1. 35% diversified equity schemes; 20% liquid schemes 2. 15% each in gold ETF, gilt fund & diversified debt fundCouple in their seventies, with no immediate family support 1. 15% diversified equity index scheme; 10% gold ETF 2. 30% gilt fund, 30% diversified debt fund, 15% liquid schemesCouple in their seventies, with no immediate family support but very sound physically andmentally, & a large investible corpus 1. 20% diversified equity scheme; 10% diversified equity index scheme; 2. 10% each in Gold ETF & Liquid, 25% each in gilt & diversified debt fundPayment Mechanism for Purchase / Additional Purchase For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  20. 20. 20 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================Cheques accompanying the investment application are to be signed by the investor. Third-partycheques are not accepted. RTGS is used for Instantaneous Transfer of Funds. In NEFT Fund istransferred in Batches. SWIFT is used for abroad transfer and takes 2 or 3 days.Small investors, who may not be tax payers and may not have PAN/bank accounts, such asfarmers, small traders/businessmen/workers, SEBI has allowed cash transactions in mutual fundsto the extent of Rs 20,000/ – per investor, per mutual fund, per financial year. However Repaymentin form of redemptions, dividends, etc. with respect to aforementioned investments shall be paidonly through banking channel.For investors directly investing into mutual funds without routing through a distributor, Mutualfunds/ AMCs will provide a separate plan which will have lower expense ratio and will have aseparate NAV with effect from January 2013.Derivative Investments - Mutual Funds are barred from writing options (they can buy options) orpurchasing instruments with embedded written options. In India, mutual fund AUM is hardly 10%of bank deposits.Factors that Influence the Investor’s Risk Profile 1. Risk appetite increases as the number of earning members increases 2. Risk appetite decreases as the number of dependent member’s increases 3. Risk appetite is higher when life expectancy is longer. Lower the age, higher the risk that can be taken. People earning regular income can take more risk than those with unpredictable income streams. 4. Well qualified and multi skilled professionals can afford to take more risk 5. Those with steady jobs are better positioned to take risk 6. Daring and adventurous people are better positioned mentally to take risk. 7. Higher the capital base, better the ability to financially take the downsides of risk. Recurring Expense LimitsNet Assets Equity DebtFirst 100 Crores 2.50% 2.25%Next 300 Crores 2.25% 2.00%Next 300 Crores 2.00% 1.75%Above 700 crores 1.75% 1.50% • For FOF the total expenses should not exceed 0.75% • For Index Funds – 1.5% • Recurring Expenses includes Fund Management Fee alsoINVESTMENT MANAGEMENT FEE • First 100 Crores – 1.25% • Remaining Net Assets – 1% For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  21. 21. 21 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================NPSPension Funds Regulatory and Development Authority (PFRDA) is the regulatorTier I (Pension account), is non-withdrawableTier II (Savings account) is withdrawableAn active Tier I account is a pre-requisite for opening a Tier II accountInvestors can invest through Points of Presence (POP)Asset Class E: Equity market instrumentsAsset Class C: Corporate BondsAsset Class G: Government SecuritiesInvestment based on Age : Life Cycle FundNPS managed by 6 Pension Fund Managers (PFMs)Personal Retirement Account Number (PRAN), is applicable across all the PFMs where theinvestor’s money is investedAbbreviationsA/A Articles of AssociationACE AMFI Code of EthicsAGNI AMFI Guidelines & Norms for IntermediariesAMC Asset Management CompanyAMFI Association of Mutual Funds in IndiaAML Anti-Money LaunderingARN AMFI Registration NumberASBA Application Supported by Blocked AmountCAGR Compounded Annual Growth RateCDSC Contingent Deferred Sales ChargeCFT Combating Financing of TerrorismCVL CDSL Ventures LtdDD Demand DraftDDT Dividend Distribution Tax (Additional Tax on IncomeDistribution)DP Depository ParticipantECS Electronic Clearing ServiceF&O Futures & OptionsFCNR Foreign Currency Non-Resident accountFEMA Foreign Exchange Management Act, 1999FII Foreign Institutional InvestorFIRC Foreign Inward Remittance CertificateFMP Fixed Maturity PlanHUF Hindu Undivided FamilyISC Investor Service CentreKIM Key Information MemorandumKYC Know Your Customer For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  22. 22. 22 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!======================================================================M/A Memorandum of AssociationM-Banking Mobile BankingMF Mutual FundMicro-SIP SIP with annual aggregate investment less than Rs 50,000MIN Mutual Fund Identification NumberNAV Net Asset ValueNBFC Non-Banking Finance CompanyNEFT National Electronic Funds TransferNFO New Fund OfferNOC No Objection CertificateNPA Non-Performing AssetNRE Non-Resident External accountNRI Non-Resident IndianNRO Non-Resident Ordinary accountPAN Permanent Account NumberPDC Post-Dated ChequesPFM Pension Fund ManagerPFRDA Pension Fund Regulatory & Development AuthorityPIO Person of Indian OriginPMLA Prevention of Money Laundering ActPoA Power of Attorney / Points of Acceptance, depending on contextPOP Points of PresenceRBI Reserve Bank of IndiaRTA Registrars & Transfer AgentsRTGS Real Time Gross SettlementSAI Statement of Additional InformationSEBI Securities & Exchange Board of IndiaSID Scheme Information DocumentSIP Systematic Investment PlanSRO Self Regulatory OrganisationSTP Systematic Transfer PlanSTT Securities Transaction TaxSWP Systematic Withdrawal PlanSWIFT Society for Worldwide Interbank Financial TelecommunicationUSEFUL WEBSITESCredence Analytics ( ( ( Star ( Research ( (Model Test for NISM/NCFM/BCFM Exams)IMPORTANT NOTE : 1. Attend ALL Questions For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988
  23. 23. 23 offers Online Mock Test for NISM, NCFM, BCFM Exams. Register Now!====================================================================== 2. For the questions you don’t know the right answer – Try to eliminate the wrong answers and take a guess on the remaining answers. 3. DO NOT MUG UP the question & answers. It’s not the right to way to prepare for any NISM exam. Good understanding of Concepts is essential. All the Best ☺ AKSHAYA INVESTMENTS Invest anywhere. Consult us. 94, First Floor, TPK Road, Andalpuram, Madurai – 625 003. Email: Ph: (0) 98949 49987, (0) 98949 49988 Our plans PLAN A : Rs 250 for 5 Online Model Tests PLAN B : Rs 400 for 10 Online Model Tests PLAN C : Rs 500 for 15 Online Model Tests For NISM, NCFM Training – Contact (0) 98949 49987, (0) 98949 49988